China's Main Stock Markets React to Global Turmoil
Xu Wei
/SOURCE : Yicai
China's Main Stock Markets React to Global Turmoil

(Yicai Global) Feb. 7 – China's main stock markets closed mixed at the morning session today after suffering substantial fall yesterday in line with significant drops in international markets. The Shanghai Composite index fell further, while Shenzhen Component Index rebounded as Asian stock markets rallied early today, helped by investors hunting bargains.

The Shanghai Composite Index fell to 3,352.83 points at 1.20 p.m. today after closing at 3,370.65 points yesterday, down 3.35 percent, with the turnover of CNY318.8 billion (USD50.9 billion); Shenzhen Component Index rose to 10,4016.32 points at 1.20 p.m. today after closing at 10,377.61 points yesterday, down 4.23 percent, with CNY240.8 billion turnover; The Growth Enterprise Market Index closed at 1,598.12 points, down 5.34 percent, with CNY61.4 billion exchanged, hitting the lowest level since 2015.

The three major indexes in the US stock markets suffered a collective setback over the past two days. Among them, the Dow Jones Industrial Average dropped more than 1,500 points, erasing all the gains since the beginning of the year.

The S & P 500 index was down 4.1 percent at 2648.94 points; the Dow Jones Industrial Average dropped 1,175 points to 24345.75 points, a 4.6 percent decline; The Nasdaq Composite Index fell 3.8 percent, to 6,967.53 points.

The US stock market trend is not likely to affect A shares directly, commented Wei Wei, an analyst at Ping An Securities. China's riskless interest rate is significantly higher compared to that of the US, he said, adding the accelerated market opening process and the strong yuan exchange rate may hedge the impact from falling US stocks to a certain extent.

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Keywords: A-Share , Stock , Exchange , Fall , Upward